The company said in an 8K filing with the Securities and Exchange Commission that the plan will result in the "eliminiation of certain sales and administrative positions," although it did not specify how many.
Myers said the restructuring plan initiatives are intended to increase sales force effectiveness, reduce costs and improve contribution margins.
The company estimates it will incur restructuring costs of approximately $900,000, primarily employee-related costs, in calendar year 2019 in connection with the restructuring and approximately $1 million of other implementation costs.
The company estimates the moves could yield annualized benefits of $5 million to $7 million after calendar year 2019.
The company also informed regulators and investors it is moving and consolidating some of its manufacturing operations.
Word of the restructuring comes three weeks after Myers reported fiscal 2018 results, which showed a net loss of $3.35 million on sales of $566.7 million.
The distribution business — consisting almost entirely of Myers Tire Supply — reported pre-tax operating income fell 22.5 percent to $7.9 million on 4.3-percent lower sales of $149.6 million.
Myers attributed the reduced earnings to the lower sales volume and the incremental costs incurred to engage outside resources to assist with the planning and implementation of a set of transformation initiatives for the segment.
Investors showed little reaction to the filing. Myers' stock price was up 15 cents per share, to $18.11, the afternoon after the filing was made.
Analysts have been mixed when it comes to Myers as well. Analyst Journal reported on March 20 it found one brokerage firm with a buy recommendation on the company's stock, four telling clients to hold it and none advising them to sell.
Story includes reporting by Dan Shingler, Crain's Cleveland Business